Latvia Anticorruption Agency Detains Central Bank Governor

In a statement to Reuters, Latvia's Prime Minister Maris Kucinskis did not say why Rimsevics, a member of the European Central Bank's Governing Council, had been detained or what he was being investigated for.

Latvia's anti-corruption agency has detained central bank Governor Ilmars Rimsevics, prompting calls for him to step aside while he is under investigation.

The head of the Latvian central bank returned to Riga from a foreign trip on Saturday evening and was driven by his lawyer to the Corruption Prevention Bureau's office where he was interrogated for almost eight hours.

Ms Reizniece-Ozola did not specify why Mr Rimsevics was detained. ABLV said in a statement in response on Tuesday that FinCen had referred to unfounded and misleading information about the bank.

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Rimsevics was first appointed to head the bank in 2001. Investigators suspect that an organized criminal group, which has been operating in Latvia for quite a long time, has been using its members' office powers and political influence to extort bribes, including from credit institutions.

The Bank of Latvia said it could not comment on the investigation, but said it had a "zero tolerance policy in respect of corruption and other illicit activities".

Any connections to money laundering, experts said, will raise concerns of the risk of blackmail from Russian Federation, where the secret services and organised crime largely control the flow of illegal cross-border money transfers.

Following a series of money-laundering allegations, the regulator fined three banks a total of 5.5 million euros ($6.8 million) for handling accounts that were involved in a $1 billion Moldovan fraud in 2014. Among the most high profile was the 230 million U.S. dollars in Russian taxpayers' money that was siphoned off by Russian officials, largely through Latvian banks, according to USA and European authorities. The US and European Union sanctioned Russian individuals over the case in December 2010. In 2014, a number of leaked documents, the so-called Laundromat reports, detailed how billions were sent from Russian Federation through Latvia in the years 2011-2014. France gave the bank's chairman a four-year sentence, though he remains in his job.

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